The allocation for Panama budget 2012 is expected to be almost 1 billion dollars or 10 percent more than the amount that had been earmarked in 2011 fiscal.
Highlights of Panama Budget 2012:
The budgetary allotment for 2012 fiscal is $3.425 billion more than the amount for 2010 fiscal and 4.237 billion dollars more than the allocation for the 2009 budget.
The budget has also surpassed the 2008 edition by $5.679 billion.
The Ministry to the Presidency will receive 595 million dollars for various cold chain and metro projects.
The Ministry of Public Works will be allocated $619 million.
Initially 14.468 billion dollars had been set aside for the 2012 budget.
This was 11.4 percent more than the legally accepted budget for 2011 and 10.3% more than the amended budget.
It is expected that in 2012 Panama will see real economic growth of 7.5 percent.
The Fiscal Responsibility Act has indicated that the budgetary deficit for 2012 has been estimated at 2 percent of the GDP.
The central government is expected to earn 8.239 billion dollars in 2012 and its expenses are supposed to amount to $7.227 billion.
The decentralized organizations are expected to spend 4.234 billion dollars but their earnings will amount to approximately $3.62 billion.
The revenues of the Social Security Fund are estimated to run up to $2.379 billion. The expenditure of the public enterprises has been projected at 825 million dollars and it will earn approximately $985 million in 2012.
In 2012 the financial intermediaries will earn almost 2.182 billion dollars.
The government expects to limit budgetary deficit to 2 percent in 2012 and the budget for that period will help it achieve the target.
Expectations from Panama Budget 2012:
Alberto Vallarino, the Minister of Economy and Finance, Panama, has stated that Panama s economic growth will ensure that the 2012 budget achieves unprecedented success. He also stated that the Central American country will be able to maintain its present levels of investment due to the substantial contributions expected after the latest tax reforms.
Panama Budget 2012 – Expert Analysis:
The yearly budget for 2012 fiscal is the biggest in Panama s history. The government expects more revenue from taxes and other areas, even as the economy continues to get bigger.
Experts say that the administration headed by the President, Ricardo Martinelli, has been diligently investing in critical sectors such as infrastructure and overall improvement. This has helped in Panama s continued economic growth.
Panama has strict fiscal responsibility laws, which determine the expenses of the government and how much it can borrow and all this is done in terms of GDP percentages.
The government is also successfully paying off its debts and has brought down the portion of the budget that can be used for debt servicing, by approximately 50 percent. It has been lowered to 12% from 24%.
All these steps have had their positive effect and for the first time ever Panama has an investment grade debt rating. Their rate of unemployment is also at the lowest in 45 years and it has registered the quickest economic growth rate among all the Latin American countries.